But Suncorp said its capital position had strengthened during the period, with its capital adequacy ratio rising to 13.24 per cent, and its Tier 1 ratio increasing to 11.39 per cent.
Suncorp acting chief executive, Chris Skilton, said the Australian banking sector "had continued to be impacted by the deteriorating economy and declining property values.
"Like all Australian banks, Suncorp was impacted by worsening economic conditions and falling property values during the quarter," Mr Skilton said.
"While we believe our full year bad debts will be contained at the top end of previous guidance, given the downside risk associated with ongoing economic uncertainty, we think it is prudent to adjust our full year bad debt charge guidance to the range of 125 to 145 basis points of total loans," he said.
